Dong Hai wind farm in Tra Vinh province. (Photo courtesy of Trungnam Group) In a recent document sent to the PM, the MoIT suggestedinvestors of those projects negotiate electricity prices and power purchase andsale contracts with Vietnam Electricity (EVN).
Of the total of 78,121 MW of installed capacity of electricitysources nationwide, there was 16,545 MW of solar power, including 8,904 MW ofconcentrated solar power and 7,660 MW of rooftop solar power and 4,126 MW ofwind power that have been put into operation and have enjoyed the FIT(preferential purchase price) according to the Prime Minister’s decision.
However, the MoIT announced there were still many projects orparts of wind and solar power projects that had been implemented inpractice but not been able to enjoy the FIT price in time.
Among them, 62 wind power projects with a total capacity of 3,479MW had signed a power purchase agreement with EVN, but due to the expiration ofthe FIT price, could not set the electricity price.
At the same time, five projects with a total capacity of 452.62 MWwere waiting for a determination of THE electricity price, while several otherprojects were in progress, said the ministry.
To avoid wasting social investment, the MoIT said: “It isnecessary to determine the electricity price mechanism for projects.”
Accordingly, the ministry has proposed to the Prime Minister tocompletely solve the mechanism for the transition of wind power and solar powerprojects, remove difficulties for investors, and direct future wind andsolar power projects.
Specifically, for transitional projects, the MoITproposed the PM approve the mechanism reported in Document No. 17 from January27, in which investors of transitional projects conduct electricity pricenegotiations and power purchase and sale contracts with EVN within theelectricity generation price bracket and guidelines issued by the MoIT.
With the wind and solar power projects to be implemented in thefuture, the ministry proposed to approve the application of the electricityprice negotiation mechanism and power purchase agreement similar to thetransitional projects mentioned above, adding that it was to ensure the consistencyof the legal corridor with the projects.
As for projects that have been recognised for commercialoperation, the ministry proposed the PM issue a document to direct it to have abasis to guide the review of contracts between EVN and investors to harmonisethe interests between the seller - the buyer - the electricity consumer and thestate.
In addition, the ministry also requested the PM to annul DecisionNo 13 on the mechanism of solar power development, Decision No 37 andDecision No 39 on the mechanism of wind power development.
It was assigned to coordinate with the Ministry of Justice toprepare a Draft Decision, consult ministries and branches, and submit it to thePM for promulgation in accordance with the law.
Given the above proposals, the MoIT said as the legal basis forthe EVN bidding for electricity purchase was unclear, the above proposalswould ensure compliance with the law.
The ministry said the bidding mechanism for electricity purchaseof projects that have investors and have been implemented in progress had notbeen regulated in legal documents, including the Law on Electricity, the Law onPrices, the Law on Bidding, and the Law on Bidding, Law on Property Auction andrelated guiding documents.
In addition, the MoIT also said that while it was complying withthe bidding plan to buy electricity, it received lots of feedback frominvestors.
Most reacted strongly, expressing disagreement that thebidding for power purchase over several years did not have a solid legal basis,affecting the calculation of cash flow and the ability to pay back the capitaland repay the bank debt of implemented projects./.
VNA
